BOK chief says downside risks are greater for Korean economy

Published : 2014-07-16 21:15
Updated : 2014-07-16 21:15

The South Korean economy is expected to return to an above-par growth level during the second half of the year, but downside risks have been pronounced recently for Asia’s fourth-largest economy, the central bank chief said Wednesday.

“The economic growth would recover after the third quarter of the year, but given a protracted contraction in domestic demand and investment, an increased volatility of the Korean won, downside risks are slightly greater (for the economy than upside ones),” Bank of Korea Gov. Lee Ju-yeol said at a forum.

Last week, the central bank lowered its economic growth forecast by 0.2 percentage point to 3.8 percent for the year, factoring in the impact of the ferry disaster in April that pummeled consumer and business sentiment here.

In particular, the bank trimmed its estimate for domestic spending growth to 2.3 percent from an earlier estimate of 3.1 percent. (Yonhap)